The big problem for companies is that every SaaS vendor they use wants to upsell AI add-on licensing upgrades. Companies won’t buy the AI option for every app they’re licensing today. Something will have to give.
Nobody outside of the major players (Microsoft, Google, Apple, Salesforce) has enough product suite eyeball time to justify a first-party subscription.
Most companies didn't target it in their first AI release because there was revenue laying on the ground. But the market will rapidly pressure them to support BYOLLM in their next major feature build.
They're still going to try to charge an add-on price on top of BYOLLM... but that margin is going to compress substantially.
Which means we're probably t minus 1 year from everyone outside the above mentioned players being courted and cut revenue-sharing deals in exchange for making one LLM provider their "preferred" solution with easier BYOLLM. (E.g. Microsoft pays SaaS Vendor X behind the scenes to drive BYOLLM traffic their way)
